HIPMI Pushes for New Regulations for BUMN Business Ecosystem

The Chairman of the Central Executive Board of the Indonesian Young Entrepreneurs Association for Synergy of State-Owned Enterprises (Badan Usaha Milik Negara – “BUMN”), Daya Anagata Nusantara Investment Management Agency (Badan Pengelola Investasi Daya Anagata Nusantara – “Danantara”), and Regional-Owned Enterprises (Badan Usaha Milik Daerah – “BUMD”), Anthony Leong emphasized not to ignore the involvement of Micro-, Small-, and Medium-Scale Enterprises (Usaha Mikro, Kecil, dan Menengah – “UMKM”) and young entrepreneurs in the BUMN business ecosystem. He suggested new efforts for young entrepreneurs.

"For example, there is a mandatory quota of 30 percent of BUMN purchases from young entrepreneurs or UMKM, while simplifying the tender process. Don't let bureaucracy kill innovation," he told Hukumonline.

The next proposal is the formation of a special team in each BUMN that focuses on fostering young entrepreneurs from the mentoring process to market access; as well as regulations for synergy between BUMN, Danantara, and BUMD, which will also develop the potential of young entrepreneurs.

"New regulations must be in place, the main points are the mandatory allocation of 20 percent of funds from Danantara for young entrepreneurs recommended by BUMN/BUMD, an Independent Supervisory Board to ensure collaboration runs, and mapping the roles of each," he continued.